Four Winds' big payout to units overdue

September 25, 2008

Negotiations between the State of Michigan and the Pokagon Band of the Potawatomi Indians over revenue sharing payments due state and local governments from the tribe are still at impasse. And, the two sides are still "very close" to resolution. Three-quarters of a year after the first money was withheld, nearly $20 million is owed the state, Berrien County, New Buffalo Township and the city of New Buffalo. Last December, when the initial slot machine proceeds from the Four Winds Casino came due, state officials predicted a quick resolution to the standoff. Since then, every month or so, the Michigan Gaming Control Board has reported an imminent conclusion to the matter by Gov. Jennifer Granholm's office. It's the same line repeated last week by John Wernet, deputy legal counsel to the governor. The Pokagons' silence on why they're stonewalling is increasingly frustrating to Berrien County residents. The compact the Pokagons signed with the state in 1998 calls for the tribe to pay 2 percent of its slot machine revenue to local units and 8 percent to the state. The take averaged about $24.4 million a month in the first eight months after the casino's August 2007 opening. The tribe has placed the state's estimated $15.6 million, as well as the $3.9 million due Berrien County, New Buffalo Township and city in an interest-bearing account. It's clear, however, that the units needed this money months ago. Michigan, with the highest rate of unemployment in the nation, has budgeted its share to the Michigan Economic Development Corp. The strapped local governments require at least part of their funds to offset costs related to the Four Winds, including a new $1.4 million radio tower, policing and road work. Problems first surfaced after tribal owners of Michigan casinos in Petoskey and Manistee challenged the state's Club Keno as a violation of their compacts. The Pokagons also protested the makeup of the revenue sharing board empowered to disperse its local funds. The two northern tribes subsequently settled their case, and the local revenue sharing board was reformulated to answer the Pokagons' concerns. Whatever issues remain, the tribe can continue to work them out with the state. But right now, it should honor its contract and pay the governmental units what's owed them. When the tribe needed it, the Berrien County community stepped up to help make the Four Winds project viable. The Pokagons are eroding that goodwill.